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Wild Stock Markets As Week Nears End; Dallas Hot Streak Ends; Iowa Straw Poll This Weekend; Health Care Law Illegal; Postponing Retirement; U.S. Postal Service Expects To Lay Off 120,000 Workers

Aired August 12, 2011 - 13:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

DREW GRIFFIN, CNN ANCHOR: Hey, stocks and jobs, windows on the economy, and a view this hour at best is mixed on one side. Rally follows rally on Wall Street. On the other, layoffs threatening now one in five U.S. postal workers. We'll have much more on that in a moment.

But we begin on the floor of the New York stock exchange, we have the plunges and surges of the past four days have now settled into relatively smooth, relatively modest upswing. Am I right, Alison Kosik?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: You are absolutely right. I think we've all had enough seesaws and roller coasters to last at least a half a lifetime after the week we've had. Sure, it's much calmer here on Wall Street today, you're seeing a nice rally, the Dow up 147 points.

It's also higher because of a positive retail sales report, retail sales rose half a percent in July. It shows that consumers aren't going on big shopping sprees, but they're still out there spending and that's good news. Now, we also got a Dow report on consumer sentiment, showing that it fell to its lowest level in 30 years, but at least we're not seeing those wild, wild swings we saw all week. Look at this, the Dow closed down 600 points on Monday, up 400 points on Tuesday, down 500 points on Wednesday, and up 400 yesterday. It was the first time in the Dow's history we've seen closing numbers like this -- Drew.

GRIFFIN: Also, you could probably measure the heartbeat of traders the same way, up and down. Tell us what happened in Europe now, they're trying to prevent these wild up and down swings.

KOSIK: OK. Well, what they -- what they're doing is that they are putting a temporary ban on short selling. What short selling essentially is is when investors -- they bet that a stock will go down in its price. So what Europe did, is Europe's version of our Securities And Exchange Commission, it put this temporary ban for 15 days on several European countries, including France, Italy, Spain, and Belgium to just kind of put a ban on this practice to try to stabilize the markets after we've seen these really extreme moves over the past week, and at least in Europe it looks like it is working. The European averages ended significantly higher -- Drew.

GRIFFIN: All right, Alison, we'll watch for the close later on today. Thank you.

Now to the dire economic challenges that threaten the very existence of the U.S. postal service. That's not me talking, that's from a postal service document that aims to make a case for drastic cutbacks. We're down from 30 percent of the USPS workforce, 120,000 layoffs on top of 100,000 jobs that will be lost through attrition. People will quit or retire and they just won't be replaced.

The postal service also wants to quit federal health and retirement plans in favor of cheaper private plans. All of this means tearing up union contracts, and that requires approval from Congress. So, what are those economic challenges that brought us to this point? Well, e-mail of course, texting, tweeting, Facebook, none of which requires stamps. The recession took a big bite out of business mailing, and not only does the postal service face staggering health care bills for its workers and retirees, it's the only federal agency required to pay the costs in advance.

And get this, the volume of mail keeps going down, but the number, the sheer number of addresses to be serviced keeps going up as we build more homes and businesses.

I'm joined on the phone now by the president of the National Association of Letter Carriers. Fredric Rolando is one of several union leaders who doesn't want to give up jobs or give up any benefits. Mr. Rolando, I've got to ask you, is that a realistic view of what the postal service is facing?

FREDRIC ROLANDO, PRESIDENT, NATIONAL ASSOCIATION OF LETTER CARRIERS (via telephone): Good afternoon, and how are you doing today?

GRIFFIN: I'm doing very well.

ROLANDO: We are real disappointed in the announcement because next week we're about to enter into collective bargaining discussions with the postal service, and we're disappointed the postal service has chosen to take collective bargaining issues into the halls of Congress. Mostly, because what that does is it distracts the Congress from the real issues that they need to be addressing, which is the prefunding of future retirees health benefits and the -- and recognizing the pension surplus that the postal service has in both retirement systems.

GRIFFIN: Well Mr. Rolando, let me ask you, what would you do? We're talking about -- I believe the postal service losing $8 billion last year alone, and the forecast is not for any turnaround that I can tell.

ROLANDO: Well, what would I do? I would ask Congress to act and fix the crisis that they created. What the Congress did was mandate, as I believe you alluded to, that the postal service prefund their future retiree health benefits for the next 75 years. That's for people that don't work for us yet, that's for people that aren't even born yet, and to do so in a period of 10 years. All the losses that you read about -- if you look at the operational budget of the postal service, in the last four fiscal years, despite the diversion to the Internet, and despite the worst recession in 80 years, the postal service had just short of a $1 billion profit in the four-year fiscal period, if it wasn't for these payments that nobody else is required to make.

So, what would I do? I would ask the Congress to address the prefunding by looking at the surpluses that the postal service has in its pension funds and allowing them to transfer their own money -- this doesn't involve tax money, their own money into the account so that they don't have to deplete their operating budget (instead) of refund the account.

GRIFFIN: And you believe that can be achieved and the post office can be made whole strictly with that and you would not have to lay off these people?

ROLANDO: Yes. Absent that, the postal service would not only have shown a profit, they would have had plenty of money in the bank and a full borrowing authority for which they could, you know, sustain some of the losses from the loss of first-class mail so they can adjust their business model. So, absolutely.

GRIFFIN: Well, later on in this show, we're going to be talking with somebody from the U.S. Postal Service, I'll ask if it's that easy. But let me as you this, I mean the mail delivered to my house, I must tell you, week after week after week is becoming less and less important in my life. Are you concerned that the United States is moving away from the U.S. mail as the backbone of how we communicate and transfer funds?

ROLANDO: Absolutely not because what the postal service has is very unique. We've got the only universal communications network in the country. We have 150 million addresses six days a week, and we're serviced by the most trusted federal employees for five years in a row. This is a network that's invaluable to this country for not only mail but for all kinds of last mile delivery and other services. So no, I don't have that concern at all, we have to adjust like we did with the telegraph and telephone.

GRIFFIN: All right. Fredric Rolando with what he thinks is a pretty quick and easy solution to the problems at the postal service. We'll ask the postal service if it's so easy, why isn't it happening?

Thanks a lot for joining us, sir.

ROLANDO: Thank you.

GRIFFIN: Other news we're following this hour, one word sums up job prospects, where you live, bleak. A new CNN/ORC poll shows just 29 percent of respondents expect more jobs to become available over the next 12 months, 44 percent think the jobs outlook will remain stagnant, and 26 percent believe the job's picture will get even worse. As for things right now, seven in 10 say few jobs are available in their area, only one in four believe that there is a normal amount of jobs available. Hey, the hot streak is over for Dallas, that's good. The streak of 100 degree days ended after 40 days, just two shy of the record set back in 1980. It started back in early July, but a line of thunderstorms moved in yesterday afternoon knocking temperatures down into the 70s and 80s. But they're not jumping for joy just yet. Forecasters say the temperature could be back in triple-digit territory today.

Some 16,000 British police will remain on the streets in London to insure that the drinking doesn't spark more rioting that swept the capital and other cities this week. More than 1,900 people have been arrested across the country since that violence first broke out last Saturday in north London. The rioting was triggered when a man was shot and killed by London police. Prime minister, David Cameron, lashed out at the police's response saying they waited too long to begin arresting rioters. Courts have stayed open 24 hours to process those accused of crimes ranging from assault to stealing.

Texas governor Rick Perry set to join the crowded Republican race for the White House. So, what's he bringing to the party? We're going to take a look, next.

(COMMERCIAL BREAK)

GRIFFIN: Texas governor Rick Perry apparently done playing the waiting game. He's now ready to enter the Republican race for the White House, he'll make it official during an appearance in South Carolina tomorrow.

So, who is he? He has now been the governor of Texas longer than anybody. He took office in 2000, when then governor George W. Bush became the president. He's won the election three times since then, but he wasn't always a fiscally conservative Republican. Three decades ago, 1984, he was elected into the Texas House of Representatives as a Democrat, he even campaigned for Al Gore in 1988, but the next year he switched parties. So, what does he mean to the race in 2012? Here is what a couple of the current candidates said during last night's debate in Iowa.

(BEGIN VIDEO CLIP)

HERMAN CAIN (R), PRESIDENTIAL CANDIDATE: Welcome to the contest. From my perspective, it doesn't bother us or my campaign. That's just one more politician, and that makes this business problem solver stand out that much more.

REP. RON PAUL (R), PRESIDENTIAL CANDIDATE: I'm very pleased that he's coming in because he represents the status quo.

JON HUNTSMAN (R), PRESIDENTIAL CANDIDATE: We all need prayers and I hope he offers a whole lot for everybody here on this stage.

(END VIDEO CLIP)

CNN Deputy Political Director Paul Steinhauser in Des Moines, Iowa for us today. And Paul, before we get to Perry, I hear that Sarah Palin has been sighted?

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Yes, hell, if somebody you know, Drew, extremely well, I've even been up to Alaska a number of times to talk to her. Yes, if you remember earlier in this week, we learned that she was going to bring out a one-nation bus tour here into Iowa maybe to grab some of that spotlight again. She's been out of it for a while, maybe she wanted to grab some of the attention from the candidates that are already in the race.

Well, here's what happened about a half an hour ago, our coverage manager, Steve Brusk, said -- e-mailed me, said Palin is here. He went running somewhere, I don't know where he is right now, this is a pretty large fairgrounds. So, I got -- I got Brusk and Peter Hamby, a political reporter, and Don Lemon is here, they're all out with her right now. From what I hear, a large crowd of people, and of course, a large crowd of reporters and producers following her around.

And Drew, listen, we don't know. She said she'll decide maybe by September whether she's going to run or not for the Republican presidential nomination, but she always seems to find the spotlight, and she's doing it again today right here at the State Fair -- Drew.

GRIFFIN: She absolutely does. You know, in this Republican race, it always seems like that Republican not in the race is the one most favored, that seems to be Rick Perry's seat right now. Does he become the immediate frontrunner for Republicans tomorrow?

STEINHAUSER: No, he doesn't become the frontrunner, but he's pretty much right here at the top of the pack. Our most recent poll, in fact, we put out just two days ago, had Ron Paul who's right now the perceived front runner, it was basically almost dead even on our most recent poll. And so, he comes in with a lot of clout, a lot of firepower, a lot of name brand, which is important. We will see how the fund-raising goes, but yes, he jumps into the race very near the top of the pack. It's going to make what's been an interesting battle for the Republican nomination even more fascinating.

GRIFFIN: And based on what you observed last night in the debate, is he feared the most right now -- among the other candidates, I should say?

STEINHAUSER: I think with Perry in the race, and I guess it happens officially tomorrow in South Carolina, and you know where he's going to be Sunday? Right here in Iowa. He's also stopping in New Hampshire, so I guess a hat trick (ph), a try effective to really go to state (ph) this weekend for Perry.

GRIFFIN: Who has the most to gain (ph) and lose?

STEINHAUSER: Well, somebody else from the more conservative side? Maybe a Michele Bachmann, maybe a Rick Santorum, somebody else trying to find attention. I mean, most (inaudible) say there is a spot on the finals in the saddle for nomination for Mitt Romney, and there's a spot for the anti-Romney. Well, that anti-Romney, up to now, is going to show Bachman, maybe it becomes Rick Perry, either way, it's going to be a fascinating race -- Drew.

GRIFFIN: And Palin. Any idea? I know she is so secretive -- I can't even call it a campaign, can I Paul? So secretive with her entourage, that it's hard to tell what she is doing. But do you get the impression, just based from your experience, that she's going to jump in this thing?

STEINHAUSER: You know what? She know how to find the spotlight, and she sure has done that and she's doing it again today, right here in Iowa, one day before that crucial straw pull. But what she hasn't done, Drew, she really hasn't formed any campaign structure in a campaign in waiting, and that's a good indication maybe that, well, maybe she's not there yet.

But again, this is Sarah Palin, and as you well know, anything can happen. But again, she's stealing the spotlight away, in fact Drew, right now live right next to the bus behind us, Ron Paul is speaking and seven other candidates are here today. We have live pictures of Ron Paul. But, you know what, we're talking about Sarah Palin and we're talking about Rick Perry, the two people not in the race yet, Drew.

GRIFFIN: And guess what, Paul, if you get video of Sarah Palin or get a sound bite from her, bring that back to us. You can hold the Ron Paul stuff.

STEINHAUSER: I promise you -- I'll tell you, if Don Lemon or Hamby or anybody, we're going to -- they're going to run right back here. We're going to feed that tape and they're going to get on live with you ASAP. Promise, Drew.

GRIFFIN: All right, fun times at the Iowa State Fair.

Thanks, Paul.

Hey, coming up, would raising taxes hurt the economy, or do we have to face the reality that taxes need to go up, and on whom? We'll be right back.

(COMMERCIAL BREAK)

GRIFFIN: It's a long-debated issue -- raising taxes. Would it hurt the economy and kill jobs? Or, as others argue, do we have to face the reality that taxes, at least on some people, need to go up to reduce deficits and get the national debt under control? Earlier today Ali Velshi asked this question to Christina Romer, former chair of the president's economic council of advisers.

(BEGIN VIDEO CLIP)

CHRISTINA D. ROMER, FMR. CHAIR., OBAMA'S COUNCIL OF ECON. ADVISERS: It's clearly a matter of timing. So what our paper showed is that tax changes, both up and down, do have a powerful effect on the economy. And if you raise taxes in the short run, it will tend to lower output. And that's one of the reasons why I'd say, you know, even though I very much support raising taxes for dealing with the deficit gradually over time, now is not the time to do it because either raising taxes or cutting spending now would absolutely be very hard on the economy. That doesn't mean you can't legislate it to kick in when the economy is closer back to normal, then that's when an economy would be much more able to deal with it.

ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: And we may be faced with that. The congressional super committee is charged with coming up with another $1.5 trillion in deficit reduction somehow in a stagnant economy, like we could be in right now. Do tax increases make more sense than government spending cuts if this group is forced with coming up with something before the end of the year?

ROMER: Well, certainly the evidence is that tax increases tend to have less of a contractionary impact than big cuts in government spending. So if it's an either or, you should, I think, tax increases are less contractary, especially tax increases on the very wealthy because I think they're not one -- the wealthy are not ones that tend to spend very much of the income they get and so it has less of an impact if you raise their taxes, at least in the short run. The key thing is --

VELSHI: And yet we hear -- go ahead. I'm sorry.

ROMER: I was going to say, the key thing, again, is timing, right?

VELSHI: Right.

ROMER: So I would argue very strongly that we very much actually need more fiscal support now. We actually need probably a big tax cut now for firms that want to hire workers. But the way you make that fiscally responsible is to say to your super committee, over the next 10 years, you're going to have to come up with another trillion or two trillion of deficit reduction. But if you do it in that sequential way, that can get you what you need for the economy today and give people the confidence that you'll get your deficit under control over time.

VELSHI: That rolls off your tongue so easily. It sounds so simple the way you say it.

All right, let's say -- if you're saying that we could raise taxes in some cases on higher income earners. We're talking about -- IRS has just released new figures that show about 3 percent of people in 2009 claimed more than $200,000 in income. If you were to increase taxes on the higher -- highest earners in this country, over what timeframe and how would you suggest doing it?

ROMER: So I think the key thing is, you know, and here's a place where there's a lot of agreement among economists, that the best way to raise additional tax revenue is to cut back on loopholes, tax credits, deductions. All those so-called tax expenditures that are in our tax code and actually use some of the revenue you'd raise to reduce the deficit. And you can even take some of it and reduce people's marginal tax rates. And the reason there's so much agreement among economists, Republican/Democrat, is that that is both good for the deficit and good for incentives. If you lower people's marginal tax rates, it does tend to have an incentive effect, encourages labor input, encourage working and entrepreneurial activities. So that's a good thing. So that's certainly why I think cutting tax expenditures is certainly the best way to go.

(END VIDEO CLIP)

GRIFFIN: Checking top stories now.

The sister in the trio of alleged sibling bandits says she, quote, "deserved to get shot." Investigators say Lee Grace Dougherty was shot in the leg after she pointed her automatic pistol at a Colorado police chief. Dougherty and her two brothers were arrested Wednesday after their vehicle crashed following a high-speed chase with the police. They had been on the lam for more than a week, accused in a series of crimes in Georgia and Florida.

A tiny bit of good economic news to report. Americans went shopping last month, boosting retail sales by half a percentage point. Economists had predicted the gain since July as a key back to school shopping month. Industry watchers say the rising retail sales should help ease concerns that consumer spending is faltering.

Just about tee time again for Tiger Woods, one day after his worst first round in a major since 1996. Woods shot a 77 yesterday to finish 7 over par behind and 14 shots behind first round leader Steve Stricter. Woods began the day with promise, though. He was 3 under through five holes before flaming out with five bogeys, three double bogeys and three shots in the water.

Coming up, why seniors are being forced to postpone retirement. Some even convinced they're going to work until they die.

(COMMERCIAL BREAK)

GRIFFIN: We have big news just in now on the health care front. A federal appeals court here in Atlanta has ruled a key part of President Obama's health care reform package is unconstitutional. CNN producer Bill Mears is on the phone with details.

Bill, what can you tell us?

BILL MEARS, SUPREME COURT PRODUCER (via telephone): The key provision is called the individual mandate, Drew, and it requires nearly all Americans to purchase health insurance or face severe financial penalties. Well, now this court has said this provision is unconstitutional. That Americans cannot be forced to purchase a product like medical coverage. So it really throws into chaos the future of this legislation that was passed last year and signed by President Obama.

An appeals court in Cincinnati just a few weeks ago found the law to be constitutional. So now we have two federal courts at odds over this issue and we're still waiting for another federal court in Richmond to decide this. All this means is that the Supreme Court is going to be taking up this issue in the next several months and they'll get the final say on the constitutionality of this bill.

GRIFFIN: And that, Bill, for those of us who don't follow the law this closely, that seems to be now a no-brainer, when you have two federal courts -- district courts disagreeing, it does go to the Supreme Court?

MEARS: It does. It -- the issue in Cincinnati has already been appealed to the Supreme Court. The question is, timing. How quickly will the Supreme Court take this on? Obviously next year, in an election year, it's going to be a huge political issue and the justices may decide -- they may want to take their time in deciding this issue, even though there's an urgency, because many of these provisions would be going into effect in the next couple of years or so. So both the Congress, the president and opponents and supporters of this issue saying the Supreme Court needs to step in sooner rather than later and decide this issue.

GRIFFIN: All right, Bill Mears reporting on a U.S. appeals court that just has ruled here in Atlanta that the provision that requires people to actually buy health insurance or face penalties, part of the so-called Obamacare, is unconstitutional.

Thanks, Bill. Appreciate that.

Some Americans choose to keep working through their 60s and 70s, but many seniors being forced back to work given the turmoil on Wall Street and the poor economy. CNN's Allan Chernoff reports on a growing trend.

(BEGIN VIDEOTAPE)

JACKIE BOOLEY, CANCELED RETIREMENT: Thank you for calling customer service. This is Jackie. How may I help you?

ALLAN CHERNOFF, CNN CORRESPONDENT (voice-over): Jackie Booley never thought she'd still be working at the age of 66. In fact, she retired from her job as a call center manager for AT&T back in 2007. The next year, the stock market plunged and Booley's investments suffered a devastating blow.

BOOLEY: It hit me hard. I lost about 50 percent of what I had. And now I have not recovered from it since.

CHERNOFF: Her nest egg, a 401(k) and individual retirement account, was chopped in half. Social Security didn't cover all her expenses, so Jackie had no choice but to go back to work as a customer service agent.

BOOLEY: I don't believe in my heart I will ever be able to retire. I will die working. It's as simple as that.

CHERNOFF: That simple truth is a reality for many Americans who, like Booley, are seeking work after retirement, or even postponing it. More than a quarter of American workers now say they are not at all confident about retirement, according to the Employee Benefit Research Institute. That's the highest level in the two decades the institute has been asking that question. The awful job market has been especially harsh on older Americans.

LORI PARHAM, AARP SENIOR ADVISER: When we talk to our members and in our latest polling they tell us that their financial security is one of the biggest concerns, and at the moment they don't feel like they have what they need to retire.

CHERNOFF: Though Booley is still invested in stocks, she has little faith the market will jump back.

BOOLEY: It would take me ten years to amass any type of 401(k).

CHERNOFF: So instead she is doing her best to enjoy her new working life. Rather than dreaming of retirement, Jackie Bulli (ph) dreams about being a rock star. Allen Chernoff, CNN, New York.

(END VIDEOTAPE)

GRIFFIN: Up next, a strange story. The cause of death? A bite from a vampire bat.

(COMMERCIAL BREAK)

GRIFFIN: 32 past the hour. Time to check the headlines and other news you may have missed.

Hundreds of thousands of postal workers could soon lose their jobs, or face drastic changes to their benefits. The Postal Service appealing to Congress to remove collective bargaining restrictions in order to lay off 120,000 workers. It also wants congressional approval to replace existing government health care and retirement plans. The post office claims it needs to eliminate more than 220,000 jobs by 2015 for financial reasons. Since only 100,000 of those positions can be made up through attrition, the other 120,000 are from layoffs.

Federal health officials have just revealed a 19-year-old man died of rabies last year after being bitten by a vampire bat. The CDC says this is the first recorded human fatality from a vampire bat bite in the U.S. The report says the man was a migrant worker who was actually bitten in Mexico before coming to the U.S. But it warns that vampire bats appear to be migrating north possibly due to climate changes.

She was found not guilty of murder, but the state of Florida is saying Casey Anthony is responsible for the 2008 death of her two- year-old daughter, Caylee. According to a report by Florida's department of children and family, Anthony is quote, "The care giver responsible for the verified maltreatments of death, threatened harm, and failure to protect in her daughter's death.

The state says the order was issued as a professional courtesy after the sheriff's office and prosecutors finished their work on the case. The Orange County Sheriff's Office will not take any further action as a result of the report.

Bert and Ernie, they may be best friends, but the "Sesame Street" producers insist there will not be a same-sex Muppet marriage in their future. A recent online campaign and petition called for the two to "Sesame Street" characters to get married as a way to beat homophobia and encourage tolerance of gay people; 90,000 people actually signed the petition. "Sesame Street" says Bert and Ernie were created to teach pre-schoolers that people can be good friends with those who are very different from themselves. And as puppets, they do not have any sexual orientation.

In Philadelphia violent attacks by gangs of young people lead to a strict new curfew for teenagers. Next we are going to hear who the mayor is blaming for the attacks and how he plans to stop them.

(COMMERCIAL BREAK)

GRIFFIN: Tonight is a night when a 9:00 p.m. weekend curfew begins in Downtown Philadelphia for anybody under 18. It's a new city mandate announced this week after so-called flash mobs of violent young people attacked complete strangers in several areas of Philadelphia's center city. In one incident, a gang of attackers reported included an 11-year-old boy. Curfew also extends to 10:00 p.m. weekdays for children under 13. Philadelphia Mayor Michael Nutter says his city is forced to do what some parents are failing to do.

(BEGIN VIDEO CLIP)

MAYOR MICHAEL NUTTER, PHILADELPHIA: We, as a government, cannot raise peoples' children. You want to have children, you have to take care of them. We can help you. We provide services, support, all kinds of stuff, but we're not going to tolerate this kind of senseless, stupid, ignorant violent acts, and even episodically as they may occur on the streets of our city.

(END VIDEO CLIP)

GRIFFIN: That was mild. Before announcing the curfew, the Mayor Nutter spoke directly to young people and their parents in a speech Sunday at a local Baptist Church. This is what he said, quote, "This nonsense must stop. If you want to act like a butt head, your butt will get locked up. If you want to act like an idiot, move out of this city. We don't want you here any more. Parents who negligent your children, and who don't know where they are, and what they are doing, you're going to find yourselves spending quality time with your kids in jail."

He laid blame on some in the African-American community, saying this: "We have too many men making too many babies they don't want to take care of and then we end up dealing with your children. We're not running a baby sitting service."

We're following developments in Philadelphia closely, and next hour we will talk with the police commissioner there, Charles Ramsey. Well, earlier this week Warren Jeffs was sentenced to life in prison. Jeffs is the leader of that polygamist sect. He was convicted of a aggravated sexual assault of a 12-year-old girl and the sexual assault of a 15-year-old girl. During the trial, the juror actually heard audiotapes Jeffs and some of the so-called spiritual wives he has. Those tapes have now been released.

CNN's Ed Lavandera joins me now from Dallas.

And, Ed, I shudder to hear what is on those tapes. What are these tapes that are being released?

ED LAVANDERA, CNN CORRESPONDENT: Let's be clear, just from the onset, we will not be sharing any of the most explicit moments that of much of the jury heard. But from the parts that we will play, you really get a sense of the hold, the way Warren Jeffs spoke with his wives. According to the prosecutors, Warren Jeffs had almost 80 wives, 79 wives, and two dozen which they believe underage at the time he was married to them. Let's listen to a little bit. This is a three-hour sexual training session that Warren Jeffs had recorded. This is him talking, presumably to several underage girls.

(BEGIN AUDIO CLIP)

WARREN JEFFS, POLYGAMIST: Now, I reveal to you that the Lord has required of me and this family, that the fullness of the Law of Sarah is for quorums of wives to be with me, to assist me, to be a comfort. Yes, even physically. Where more than one women is with me at a time.

My ladies, at the right moment, are called to assist me, and through their tenderness, and their wifely womanly ways are able to revive me. I am not to go unto the hand of the medical people or they will destroy me. The Lord has appointed that my wives who are filled with Holy Ghost, can help revive me. This takes place in such privacy, people don't know anything about it.

(END AUDIO CLIP)

LAVANDERA: Isn't that kind of ironic there at the end, Drew, where he talks about this takes place in privacy, nobody will know about it. But it was Jeffs that was recording this training session. It's unclear, however, if the girls that were in the room at the time knew this was being recorded. Many of these tapes were played, long stretches of them were played for the jury in San Angelo, Texas, that convicted Warren Jeffs, Drew.

GRIFFIN: Ed, troubling to hear. Thank you for bringing it to us. Certainly the sounds of a predator is, really, what we're hearing, Ed?

LAVANDERA: Oh, absolutely. Clearly that jury agreed. He was sentenced to essentially life in prison.

GRIFFIN: Yes, thanks. Ed Lavandera in Dallas. Thanks, Ed. Syrian tanks and troops on the move again; witnesses say the death toll of anti-government protestors rises. We will have a live report on the uprising, right after this.

(COMMERCIAL BREAK)

GRIFFIN: It has been another deadly day in Syria. Tens of thousands of people took to the streets across that country demanding that President Assad step down.

(BEGIN VIDEOTAPE)

(PROTESTORS CHANTING)

GRIFFIN: This is what we are hearing that followed. Activists say at least 10 protesters were killed by government troops. The government says one soldier was killed. Assad's forces have intensified attacks on towns and cities since the start of the Muslim holy month of Ramadan. That started about two weeks ago.

Secretary of State Hillary Clinton calling for wider international sanctions on the Assad government. He says Assad has lost the legitimacy to lead the country. And regional power Turkey also applying pressure on Syria. Syria has banned most foreign journalists. That is why CNN's Arwa Damon is monitoring developments from Beirut, Lebanon. She joins us now live.

Arwa, I know you have been in touch with people in Syria today. What are they telling you is going on?

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: You know, Drew, I think what is especially remarkable is when we look at cities like Hama and Dedazur (ph), they have really borne the brunt of the military crackdown. We still saw people trying to go out and demonstrate. In both those cities I spoke to residents who said that smaller numbers, albeit, gathered after Friday prayers. And as they were exiting a number of mosques, in both cities, security forces were already pre-positioned, began to opening fire on them.

Despite that, we're being told that people tried to regroup. Once again, tried to continue demonstrating in humps (ph) where on Wednesday and Thursday, more than 24 people were killed during demonstrations. We saw masses take to the streets there as well in similar scenes playing out all over the country. And so it seems that while this military crackdown may have forced demonstrators off the streets in some areas, most certainly they are still going out. Defiant, resilient, wherever and whenever they can.

GRIFFIN: But speaking of defiant and resilient, President Assad doesn't seem to care what the rest of the world thinks about him as a killer or a thug or whatever. Secretary of State Clinton is calling out for sanctions on oil and gas industry. Would that have much of an impact on President Assad's regime?

DAMON: Well, if there are unilateral sanctions imposed by the United States, then no. But if somehow, the U.S. can force countries like China and India, both that have significant investments in Syria, a lot of trade going on there. Or countries like someEuropean nations who also have significant dealings in Syria's energy and oil industries, then perhaps that economic pinch could be put.

Turkey would also have to get involved to try and deliver what would potentially be a devastating economic blow. If somehow all these nations could rally together and take a stance and perhaps sufficient pressure could be put on the government in the sense it would eventually be forced to drain its coffers, it would perhaps be unable to pay it's own military. It would perhaps even lose the business - the support of the business community. So, all those factors combined could push the regime over the edge.

But while we're talking about all that, let's not forget the partner that Syria has in Iran, a country that analysts say is willing to drain its own country to insure that this current regime survives, Drew.

GRIFFIN: Let me ask you about Turkey, because the foreign minister of Turkey did visit Assad. Do we know what the outcome of that was?

DAMON: Well, after that meeting, the foreign minister gave a press conference where he eluded to the fact that it would perhaps be days, not months, before certain concrete reforms were being put into place to try to bring about an end to the bloodshed.

Then we saw the Turkish ambassador to Syria travel to Hamaa, where he reported the tanks had withdrawn. But at the same time, we still have the ongoing military crackdown. So, while Turkey is pointing to the tank withdraw from Hamaa being a positive indication, we're really not seeing much else that would indicate that the regime is going to veer off its current course of action. Because even in Hamma, we still have troops. We still have secret police. We still have arbitrary arrests and shootings. And we still have the intense military crackdown happening throughout the rest of the country.

So Turkey, yes, its upped the pressure. But at this point, it really hasn't turned it on strong enough.

GRIFFIN: All right. Arwa Damon. And so hard to tell what is going on in Syria because President Assad and the Syrian government afraid to allow reporters like Arwa Damon come in and see for themselves.

Arwa, thanks for that

Checking our top stories now. The U.N. 26 people have been killed in the Ivory Coast by forces loyal to the country's new president. The killings took place in communities where support remains strong for the former country's leader, Laurent Gbagbo. A government spokesman rejected the report as incomplete.

A major Chinese train manufacture recalling 54 of those bullet trains operating on the new Beijing-Shanghai high-speed railway. The move comes after a crash of a bullet train in another part of the country last month that killed 40 people. Officials say the recall is due to a series of malfunctions.

Another British media company may be caught up in the phone hacking scandal. Journalists with publisher Trinity Mirror had been asked to give written promises they have not been involved in phone hacking. Investigators are also checking allegations of phone hacking and bribery at Rupert Murdoch's now-defunct "News of the World" newspaper.

The Iowa GOP chairman said that Sarah Palin better get to work if she wants to run for president. So is that why Sarah Palin is now in Iowa? Shannon Travis joins us from Des Moines after the break.

(COMMERCIAL BREAK)

GRIFFIN: To politics now. The Iowa straw poll is going to take place Saturday in Ames. So, that can only mean one thing. Sarah Palin will show up. She showed up in New Hampshire in June when Mitt Romney was announcing. And she showed up in Iowa the day after Michele Bachmann announced.

CNN's Don Lemon joins me from Des Moines, Iowa. Don, Sarah Palin's bus has rolled into Iowa. What's she up to?

DON LEMON, CNN CORRESPONDENT: Oh, she's up to talking to a lot of media and people here. She had a crowd of media around her. One of my first questions to her was why haven't you declared? Listen.

(BEGIN VIDEO CLIP)

SARAH PALIN, FORMER GOVERNOR OF ALASKA: I'm not the only one who has not decided yet. (INAUDIBLE) There's still a lot of contemplation that needs to go into such a earth shattering life changing decision.

(END VIDEO CLIP)

LEMON: So I asked her why she hadn't declared. You heard her answer. Do you think you're stealing the spotlight from other candidates even though you haven't declared? She said no, I don't think so! Go, go. Tell all you media go if you want to talk to the other candidates.

But I also had to handle business because a lot of people are wondering who is responsible for the downgrade in our credit? I asked her -- she's a Tea Party favorite -- if she thought the Tea Party was responsible. Listen.

(BEGIN VIDEO CLIP)

PALIN: If it weren't for the Tea Party, the discussion would never have gone where it went. So, I appreciate the Tea Party's passion for getting our federal government, realizing it needs to live within its means. You know, the last group or entity to be blamed for the downgrade should be the Tea Party. They're the ones who sounded the warning bell there for the last couple of years, letting the federal government know that we would be downgraded if a plan was not put into place to start living within our means and ratcheting down the debt.

(END VIDEO CLIP)

LEMON: And wait until you hear her answer to my question, is the president responsible for the downgrade? That's coming up at the top of the hour. Also, she responds to Michele Bachmann saying she's submissive to her husband and what she said about that last night at the debate. All coming up at the top of the hour.

GRIFFIN: Don, you're just a big tease. Can't wait to hear those.

(LAUGHTER)

LEMON: I've been called worse.

GRIFFIN: I know you have. Me too. Hey, Don, thanks.

Coming up, we'll look at one of the most intricate, elaborate and some say still unsolved FBI bank robbery cases the FBI's ever had. Don't go anywhere.

(COMMERCIAL BREAK)

GRIFFIN: This Saturday night at 8:00 p.m., CNN PRESENTS is digging deep into a bizarre crime. It remains the most complicated bank robbery investigation in the FBI's history. Many believe the FBI still hasn't solved it. A 46-year-old pizza delivery man walks into a Erie, Pennsylvania bank wearing a bomb attached to his neck. He demands $250,000 in cash. This is what happens next.

(BEGIN VIDEOTAPE)

(BEGIN AUDIO CLIP)

911 OPERATOR: 911, what's your emergency?

BANK EMPLOYEE: Yes, we've just been robbed.

911 OPERATOR: Is anyone hurt?

BANK EMPLOYEE: No. He just walked out the door.

(END AUDIO CLIP)

GRIFFIN (voice-over): August 28, 2003. Erie, Pennsylvania. Within minutes of robbing a bank, Brian wells is surrounded by police, cross legged on the ground and handcuffed. Under his T-shirt, he tells police is a bomb.

He asks police to call his boss, then to save his life. Twenty- five minutes tick by. Then the device begins to beep. In an instant, the bank robber is dead.

(on camera): The death of Brian Wells in this parking lot that day turned out to be only the beginning of the most elaborate, intricate and some say still unsolved bank robbery case the FBI has ever had.

It was a hot Thursday afternoon. Jean Heid was expecting to see her brother at a party that night but she had one errand to run. A quick shopping trip on Erie's Peach Street. But there was trouble. Police had blocked the road. Cops and cars everywhere. She turned around and went home. It was only later that night watching the 10:00 news she learned what that traffic was all about.

JEAN HEID, BRIAN WELLS' SISTER: My kids are sitting on the couch, and then the story airs of this bank robbery and a man came into the bank with a bomb on him.

GRIFFIN (on camera): You are recognizing your brother.

HEID: My brother, sitting there with this bomb on him. I'm thinking, OK, the police have him, they'll find out who did this to him. Then as it goes on, it's like -- Brian exploded. You know, the bomb went off. Brian is dead. I'm like, I can't believe this.

(END VIDEOTAPE)

GRIFFIN: Even less believable to Jean Heid was what the FBI concluded about her brother, that he was in on the robbery that killed him. It took the FBI years to sort through the evidence and come up with who they think was responsible. This CNN PRESENTS Saturday night at 8:00 to see if you think the FBI got it right.